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Litigation Usually Isn't the Solution But Sometimes It Totally Is

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Litigation is often the first impulse when someone takes an action against your business interests, but it isn’t always the right approach.

When a business partner, client, supplier or purchaser does something that you believe is a violation of your contract with that company or individual, or that creates a significant challenge for your business in some way, it’s natural to want to put a stop to it in a decisive manner. Filing a lawsuit seems to be the “civilized” way to do that in today’s society.

But more often than not, both parties walk away from the courtroom disappointed and frustrated with only empty bank accounts to show for it. While a lawsuit might seem the way to resolve a business dispute, the conclusion is seldom as satisfying as filing the suit in the first place. In fact, there’s almost always a better way to resolve disagreements between the parties, even when the other party is clearly in the wrong. Here are a few reasons why you might want to avoid litigation as a means of resolving business disputes.

Civil litigation of any kind is costly. A 2010 survey of Fortune 200 companies with lawsuits that cost over $250,000 found that litigation costs for major business cases rose 78 percent between 2000 and 2008, measured as a percentage of........

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